Capital Adequacy Ratio

Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR), is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements.

Read more about Capital Adequacy Ratio:  Formula, Use, Risk Weighting, Types of Capital

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